Vietnam and Japan Can Strengthen Cooperation in Digital Economy

Vietnamese National Assembly Chairman Vuong Dinh Hue speaks at the first plenary session of the first CLV parliamentary summit in Vientiane on December 5.

Vietnam presents cooperation proposals at first CLV parliamentary summit

Vietnamese National Assembly Chairman Vuong Dinh Hue has made major proposals to rev up cooperation between the legislatures of Cambodia, Laos and Vietnam (CLV) at the first CLV parliamentary summit in Vientiane on December 5.

In his speech, Hue first emphasized the invaluable heritage of solidarity, friendship, closeness and political trust between Cambodia, Laos and Vietnam. He said Vietnam always values and considers this a strategic task and top priority in its foreign policy.

He affirmed that the establishment of the CLV parliamentary summit mechanism is an important milestone in the history of cooperation between the three parliaments. To foster tripartite parliamentary cooperation, Hue suggested enhancing institutions, legal policies, and coordination and support at regional and international forums.

He asked the three parliaments to closely monitor the implementation of economic, trade and investment cooperation agreements and negotiate to sign new documents. He also stressed the need to respond to climate change and encourage sustainable development goals.

Vietnam-Japan have ample opportunity to boost cooperation in digital economy: Forum

Vietnamese and Japanese experts exchanged views on solutions to foster cooperation in the digital economy between the two countries at a forum in Hanoi on December 5.

The “Vietnam-Japan Policy Research Forum: Digital Economy Partnership under Indo-Pacific Economic Framework for Prosperity: How should Japan and Vietnam cooperate?” was held by the Central Institute for Economic Management (CIEM) in coordination with the Graduate School of Public Policy under the University of Tokyo, with the support of the Toshiba International Foundation.

A view of the forum. (Photo: qdnd.vn)

Speaking at the event, Nguyen Anh Duong, Director of the CIEM’s Department for General Economic Issues and Integration Studies, highlighted Vietnam’s efforts in boosting the digital economy and cooperation with Japan in this field.

Kazuo Kusakabe, Chief Representative of the Hanoi Representative Office of Toshiba Asia Pacific Pte Ltd, pointed to the substantial potential for the two countries to strengthen their collaboration in the digital economy.

Vietnam and Japan issued a joint statement on the elevation of their relations to a comprehensive strategic partnership for peace and prosperity in Asia and the world last month, which also mentioned enhancing cooperation in the digital economy.

Participants at the forum discussed changes in Vietnam-Japan relations, international trends, and developments that affect economic cooperation in the Indo-Pacific.

Vietnam plans initiatives to sustain FDI flows

Vietnam will set up a support fund to encourage and attract strategic investors and multinational groups, making it more attractive in attracting foreign direct investment (FDI).

Under a resolution approved by the National Assembly, a global minimum tax rate of 15% will apply to multinational enterprises (MNEs) with revenue exceeding EUR750 million or more in two of the four consecutive years. Investors subject to the tax will have to pay the global minimum tax in Vietnam. It is estimated that more than 120 MNEs in the country will be affected by the global minimum tax.

The National Assembly has resolved to establish a fund to support investment from the global minimum tax and other legal sources to stabilize the investment climate and attract strategic investors and MNEs.

In addition to embracing the global minimum corporate tax rate, Vietnam will carry out initiatives to retain its foreign investment magnetism. The Government and the National Assembly’s moves will contribute significantly to winning the confidence of foreign investors.

Ho Chi Minh City attracts more than 3 billion USD in FDI during January – November. (Photo: VNA)

Prime Minister Pham Minh Chinh said the Government is keeping a close watch on and learning from other countries to formulate a suitable policy on the global minimum corporate tax to create favorable conditions for foreign enterprises to run effective businesses in Vietnam.

The Minister of Planning and Investment Nguyen Chi Dung has reiterated that Vietnam will prepare “incentive packages” to support investors in the context of the global minimum corporate tax being levied in 2023, helping improve the competitive edge of the investment environment and harmonizing benefits.

Vietnam should focus on upgrading socio-economic infrastructure, training high-quality human resources, developing a green economy, and streamlining administrative procedures to attract foreign investors.

The attraction and use of FDI have not only created favorable conditions for Vietnam to expand into international markets but have also helped the country improve its business activities in all aspects. It has encouraged economic transition and restructuring, growth model innovation, and the development of a modern and integrated market economy.

Make-in-Vietnam platforms compete equally with foreign giants

In the past, Vietnam was dominated by foreign digital platforms, but that has changed. The domestic market has witnessed the strong rise of Vietnam-made platforms in recent years.

Tran Minh Tuan, director of the Department of Digital Economy and Digital Society under the Ministry of Information and Communications (MIC), reported that the number of monthly users of digital platforms via mobile apps in Vietnam surpassed 500 million in the first six months of 2023, an increase of 16% over the same period last year.

Vietnam has about 60 platforms and mobile apps with more than 1 million monthly users, up 10% over the same period last year.

Among the Vietnamese-run digital platforms, Zalo is the most popular with 74 million monthly users. It is also the most influential digital platform in Vietnam, with the number of users accounting for 75.5% of the total population.

Vietnam has 16 apps with regular monthly users of over 20 million, including three Vietnamese ones: Zalo, Zing Mp3, and MoMo e-wallet.

Vietnam has 12 apps with regular users of 10-20 million, including Vietnamese names such as Bao Moi, Vietcombank, Tiki, My Viettel, and MB Bank.

The MIC is encouraging the establishment and development of digital platforms to serve as basic infrastructure for businesses and to optimize costs in digital transformation.

Photo: VNN

National digital platforms are crucial in cyberspace and can help businesses in their digital transformation. These platforms should be widely promoted to maximize their benefits and enhance the competitive edge of Vietnamese businesses.

The MIC plans to collaborate with ministries and branches to approve national digital platforms, platforms for business transformation, and platforms for the public. Campaigns in mass media and information systems will be carried out to attract people to these digital platforms.

Vietnamese Platforms

Viettel Solutions’ Deputy CEO, Nguyen Chi Thanh, emphasized the importance of Vietnam-made platforms. National digital platforms can serve as the basic infrastructure for businesses. Vietnam’s digital platforms will optimize costs in digital transformation, and ease the burden for businesses.

VNPT IT’s Deputy CEO, Nguyen Duc Kien, believes that the development of Vietnamese platforms will bring two major benefits: high quality and optimized costs for businesses. In addition, the national digital platforms will play a leading role in digital transformation and support businesses with speed, leanness, and data.

CEO of Base.vn, Nguyen Thuong Tuong Minh, said that Vietnamese technology firms have done well in supporting businesses in their digital transformation. National digital platforms are crucial for businesses to succeed in their digital efforts.